Recent cloning of the cDNA for Type I iodothyronine deiodinase revealed that the mRNA contains a UGA codon encoding the amino acid selenocysteine. Mutagenesis of the selenocysteine codon to a cysteine codon produced a protein with lower deiodinase activity. The presence or absence of selenocysteine in Type II deiodinase, which differs from the Type I enzyme in a number of parameters, has not been determined. Gold inhibits the activity of both the Type I deiodinase and the only other known eukaryotic selenocysteine-enzyme, glutathione peroxidase. Substitution of cysteine for selenocysteine in Type I deiodinase reduced its sensitivity to inhibition by gold 500-fold. We found that gold thioglucose was a competitive inhibitor with respect to the iodothyronine substrate of both deiodinases. However, the Type II enzyme from brown fat and pituitary was 100 to 1000-fold less sensitive to gold than was Type I activity in liver and pituitary, similar to the results with the cysteine-substituted Type I enzyme. This suggests that Type II deiodinase contains cysteine instead of selenocysteine in the active site.